If you are relying on growth in your portfolio to reach retirement goals, rethink your financial plan, said Kirk Chisholm, a financial advisor and principal at IAG Wealth Management in Lexington, Mass. Individual investors are notoriously bad at making investment decisions.
The financial services market research company Dalbar studied investor performance from 1984 to 2014. During that 30-year period, investors underperformed the S&P 500 by 7.42 percent annually, earning an annual return of just 3.69 percent, Chisholm said.
“Investors may blame the market, their financial advisor or just bad luck, but the reality is that most investors don’t have a plan,” he said. Too many investors gamble with investments by looking for a quick big-return trade, while others “buy and hope” with investments, he said.
To be successful, assess your own investor psychology and find an investment strategy that works for you. “This is where having an investment plan is important,” Chisholm said.
Shopping at Costco can be a great way to save money, but you might not…
Not too many years ago, cutting expenses by buying a generic brand brought with it…
No matter what type of budget you’re working with, there’s a chance you’re overspending on…
Online shopping means customers all over the world have greater access to everything from rare…
If the lyrics to the Dolly Parton song “9 to 5” could be your autobiography,…
If you think you’re the only one hurting for money, think again: Making more money…